Covid-19 Relief measures SME & Corporate overview banner

Features

Enhanced Government-Assisted Loans

Loan assistance to improve business cashflow

Enhanced SME Property Loan

Gear-up to 100% of property value

Extended Support Scheme - Standardised

Defer repayment up to 30 Sep 2021

Details

Cashflow assistance for coronavirus affected companies to tide over this difficult period. Access more funds with Enhanced Government-Assisted Loans and Enhanced SME Property Loan. You may also tap on relief measures for Hire-Purchase and Property Loan.

From 24 Jun 2021, existing SME borrowers in Tier 1 and Tier 2 Sectors# may apply to defer 80% of principal repayment under the Extended Support Scheme – Standardised (ESS-S) for SMEs*. Extended Support Scheme - Customised (ESS-C) is also available for SMEs* with viable businesses that will benefit from a coordinated and customised approach among lenders to restructure existing facilities.

#The tiering of sectors is aligned with the Jobs Support Scheme (JSS) administered by IRAS. Borrowers that are not receiving wage support through JSS will be matched by Hong Leong Finance to a suitable Tier according to the sectors in which they operate. For details of JSS tiers, please refer to https://go.gov.sg/jss.

*Small & Medium Enterprises (SME) are companies incorporated and operating in Singapore with at least 30% local shareholding, Group annual sales revenue of not more than S$100 million or group employment size of not more than 200 workers.

Enhanced Government-Assisted Loans

Government Assistance Schemes


  • Enhanced EFS Trade Loan
    • For companies incorporated and operating in Singapore with at least 30% local shareholding
    • Company's group annual sales not more than S$500 million

*Small & Medium Enterprises (SME) are companies incorporated and operating in Singapore with at least 30% local shareholding, Group annual sales revenue of not more than S$100 million or group employment size of not more than 200 workers.

Enhanced SME Property Loan
  • Enhanced SME Property Loan
    • For business entities incorporated in Singapore
    • Available to all commercial and light industrial properties located in Singapore
Extended Support Scheme – Standardised (ESS-S) for SMEs
  • Existing SME* borrowers in Tier 1 & Tier 2 Sectors# may defer 80% principal> repayment up till 30 Sep 2021
  • Applicable to:
  • For borrowers with no overdue interest payments on loans under principal moratorium and all other loan repayments are no more than 30 days past due
  • Borrowers are to pay instalments comprising the remaining 20% principal and the full monthly interest of the loan
  • Aviation and Aerospace, Tourism, Hospitality, Conventions and Exhibitions, Built Environment, Licensed food shops and food stalls (including hawker stalls), Qualifying retail outlets, Arts and Entertainment, Land Transport, Marine and Offshore
  • The deferment of 80% principal repayment will increase the overall borrowing cost
  • See illustration
  • View FAQ on ESS-S

*Small & Medium Enterprises (SME) are companies incorporated and operating in Singapore with at least 30% local shareholding, Group annual sales revenue of not more than S$100 million or group employment size of not more than 200 workers.

>Depending on the circumstances, “principal” could refer to the principal amount that would otherwise have been payable during the corresponding relief period, or the principal amount of the payment just prior to the relief period.

^Principal deferment for Hire Purchase is subject to approval.

#The tiering of sectors is aligned with the Jobs Support Scheme (JSS) administered by IRAS. Borrowers that are not receiving wage support through JSS will be matched by Hong Leong Finance to a suitable Tier according to the sectors in which they operate. For details of JSS tiers, please refer to https://go.gov.sg/jss.

Extended Support Scheme – Customised (ESS-C)
  • Any existing SME* borrowers with credit facilities with more than 1 lender, may apply to restructure the credit facilities under the ESS-C. The ESS-C will expire on 31 Dec 2021.
  • ESS-C is available to borrowers:
    • Who are in debt distress or in anticipation of payment difficulties, but are viable and expected to recover;
    • For whom ESS-S package is not suitable or not sufficient;
    • Who have exhausted efforts to work out arrangements bilaterally with individual lenders; and
    • For whom the Credit Counselling Singapore's scheme for Sole Proprietors and Partnerships and Ministry of Law's Simplified Insolvency Programme for qualified micro and small companies, if operational, are not suitable.
  • Borrowers must be assessed and recommended by one of its FIs to enter the ESS-C
  • Applicable to secured and unsecured loans granted by FIs, as well as loans granted under Enterprise Singapore support schemes
  • How to apply for ESS-C and ESS-C application form
  • Borrowers are to submit application to one of its FIs together with supporting documents, which include:
    • Declaration of all its banking facilities;
    • Latest financial statements;
    • Financial projections; and
    • Business plans

*Small & Medium Enterprises (SME) are companies incorporated and operating in Singapore with at least 30% local shareholding, Group annual sales revenue of not more than S$100 million or group employment size of not more than 200 workers.


For more information, please contact your Relationship Manager.

Property Loan Relief Illustration Table For Monthly Instalment, Additional Interest And Total Interest Payment

Assumptions:
  • Outstanding principal is S$500,000
  • Interest rate is 3% p.a.
  • Outstanding loan tenure of 180 months
  • Defer 80% Principal Repayment
  • Deferment period for 3 or 6 months
  • There is no undrawn sum
  • Interest rate remains unchanged during the whole tenure of the loan

Current
(S$)
Defer 80% Principal Repayment for 3 months
(S$)
Defer 80% Principal Repayment for 6 months
(S$)
Monthly Instalment Payment 3,452.91 3,487.73 3,523.86
Additional Interest Payment N.A. 1,204.35 2,427.46
Total Interest Payment 121,523.48 122,727.83 123,950.94
Notes
  1. Above illustration is indicative only.
  2. Monthly instalment after deferment period is computed based on outstanding tenure.

Promotions

You might also be interested in